Georgia Real Estate Practice Exam
(Free Questions & Answers)

Explanation

The Georgia Real Estate Commission (GREC) is the state agency responsible for licensing, regulation, and discipline of real estate brokers and salespersons in Georgia.

Explanation

BRRETA requires that the disclosure of brokerage relationships be provided to prospective buyers and sellers before a brokerage engagement is entered into or before showing property, whichever comes first.

Explanation

The GAR Purchase and Sale Agreement is a standardized contract form developed by the Georgia Association of REALTORS for use by member brokers and agents in Georgia residential transactions. It is widely used but not mandatory for all licensees.

Explanation

USDA Rural Development (RD) loans are available to eligible low-to-moderate income borrowers purchasing homes in designated rural and eligible suburban areas. They offer 100% financing (no down payment) to qualified applicants.

Explanation

Joint tenancy is characterized by the right of survivorship — when a joint tenant dies, their interest automatically passes to the surviving joint tenants without going through probate.

Explanation

For income-producing commercial properties like a convenience store, the income capitalization approach is the primary method because investors make purchase decisions based on the property's ability to generate income.

Explanation

Familial status (families with children under 18) is a protected class under both the federal Fair Housing Act and Georgia law. Income level, occupation, and political affiliation are not protected classes under fair housing law. Familial status, added by the 1988 Fair Housing Amendments Act, protects families with children under 18, pregnant women, and anyone securing legal custody of a minor. Housing providers cannot refuse to rent, impose different terms, or restrict facility access based on the presence of children. The primary exemption is qualified 55+ or 62+ senior housing meeting specific federal requirements. In Georgia, familial status protections are enforced by the Georgia Commission on Equal Opportunity (GCEO) under the Georgia Fair Housing Act (O.C.G.A. §8-3-200 et seq.).

Explanation

Georgia requires that a licensed Georgia attorney supervise real estate closings and disburse settlement funds. Attorneys are responsible for the legal aspects of the transfer of title.

Explanation

Number of $500 increments = $320,000 ÷ $500 = 640. Intangible tax = 640 × $1.50 = $960. Using the values given ($320,000, $1.50), apply the appropriate formula.. The correct answer is $960.. This is a common calculation on the Georgia real estate exam.

Explanation

The EPA/HUD Lead Disclosure Rule (under the Residential Lead-Based Paint Hazard Reduction Act) requires sellers and landlords of pre-1978 housing to disclose known lead-based paint and hazards to buyers and renters.

Explanation

Mixed-use zoning (also called mixed-use development) permits multiple compatible uses in the same zone or building, such as ground-floor retail with residential above.

Explanation

A property manager is a fiduciary for the property owner and has the primary duty to manage the property in a way that achieves the owner's stated goals, typically maximizing net operating income and return on investment.

Explanation

Georgia requires 75 hours of pre-license education (the Salesperson Pre-License course) before a candidate may sit for the real estate salesperson licensing examination.

Explanation

A buyer's broker under BRRETA owes fiduciary duties to the buyer including loyalty, confidentiality, disclosure of material information, obedience to lawful instructions, and reasonable skill and care.

Explanation

Under Georgia's Statute of Frauds, a contract for the sale of real property must be in writing, signed by the party to be charged, and supported by consideration. Parties must be legally competent and there must be mutual assent.

Explanation

CLTV = (First Mortgage + Home Equity Loan) ÷ Appraised Value = ($180,000 + $50,000) ÷ $275,000 = $230,000 ÷ $275,000 = 83.64%.

Explanation

Tenants in common do not have rights of survivorship. A deceased tenant in common's interest passes to their heirs through their will (or by intestate succession if no will exists), not automatically to the co-owner.

Explanation

Since the comparable is superior (has a feature the subject lacks), the comparable's price is adjusted DOWN by $8,000. Adjusted comparable value = $315,000 − $8,000 = $307,000, which better reflects what the comparable would have sold for if it had a one-car garage.

Explanation

Advertising 'no children' or 'adults only' violates the familial status protections of the Fair Housing Act, unless the property qualifies as senior housing (55+ meeting HUD requirements or 62+ housing). Familial status, added by the 1988 Fair Housing Amendments Act, protects families with children under 18, pregnant women, and anyone securing legal custody of a minor. Housing providers cannot refuse to rent, impose different terms, or restrict facility access based on the presence of children. The primary exemption is qualified 55+ or 62+ senior housing meeting specific federal requirements. In Georgia, familial status protections are enforced by the Georgia Commission on Equal Opportunity (GCEO) under the Georgia Fair Housing Act (O.C.G.A. §8-3-200 et seq.).

Explanation

Georgia uses a security deed (deed to secure debt) rather than a traditional mortgage. The borrower actually conveys legal title to the lender as security for the debt. Upon repayment, the lender reconveys title back to the borrower.

Explanation

Price reduction = $389,000 × 4% = $15,560. New price = $389,000 − $15,560 = $373,440. To solve this, multiply the relevant values: $389,000 at 4%.. The correct answer is $373,440.. This is a common calculation on the Georgia real estate exam.

Explanation

Radon is a colorless, odorless gas produced by the decay of uranium in soil. It enters homes through cracks and openings in foundations and floors and is the second-leading cause of lung cancer in the U.S.

Explanation

A variance is an official permission to deviate from specific dimensional or use requirements of the zoning ordinance when strict compliance would cause undue hardship. It does not change the zoning classification.

Explanation

A property manager typically has a general agency relationship with the owner — they have ongoing authority to manage the property on the owner's behalf over a period of time, not just for a single transaction.

Explanation

Georgia requires a minimum passing score of 72% on the real estate licensing examination to obtain a salesperson license.